Bush Announces Economic Stimulus Plan, Investors Not Impressed

Wall Street resumed its downward trek Friday as skittish investors, unable to hold on to much optimism about the economy, drew little comfort from President Bush's stimulus plan.

Investors had already pulled back from a big early gain, with the major indexes trading mixed as Bush began to speak. By the time the president finished announcing a plan for about $145 billion worth of tax relief, the indexes were well into negative territory.

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Comments

[thegreatgiginthesky]

The killing of the golden goose (the middle class) will be the straw that broke the camels back (economy)

[JohnCitizen]

THE SUPPLY-SIDE SCAM

George Bush’s $3 trillion dollar tax giveaway to the rich over the past 7 years has been a disaster for average Americans. Supply-side (trickle-down) economics is a bogus theory promoted by those who benefit from it. In a mature capitalist system, supply side never rules, it’s always the demand side of the equation that governs growth and well-being. Think about the 1930s Depression, General Motors had plenty of supply, but demand evaporated.

Previous U.S. economic downturns have been cured with only $200-300 billion in tax cuts targeted to the middle class, because the consumer (the great middle class and 2/3rds of the economy) spends that tax cut and primes the economic pump. But George Bush has raised the debt that our children and grandchildren will have to pay from $6 trillion to over $9 trillion for current economic growth (i.e. we all get trickled on, as the rich spend some small fraction of their gains). Unfortunately, this growth is largely and uniquely without wage gains, and so has shrunk the middle class that makes America strong and great. Also, this growth has already over ($3 trillion flushed down the toilet and gone!), as the FED has had to cut interest rates because recession is looming. Massive debt has led to a weak dollar, which is now at record lows vs. other major currencies because of FED interest rate cuts. In turn, the record low dollar has produced record oil prices ($100/barrel); and any additional needed FED interest rate cuts could cause a free fall in the value of the dollar, guaranteeing recession or worse, stagflation.

The middle class is slowly being tapped out, as home values (most of their net worth and the credit card of last resort) are falling in price, and a considerable number of homeowners are heading for foreclosure. With the rich-poor divide increasing, we’re headed toward previous shining examples of trickle-down economics: South America of the recent past and feudalism in the Middle Ages. SUPPY-SIDE ECONOMICS IS NEW FEUDALISM AND SERFDOM!

[Justinpassing]

Merry Merrill Lynches’ misery is far from over, because the Monolines are crashing. The Monolines are the firewall of last resort. They under-wrote insurance on Bank’s investments, but are going down like lead ballons because they were grossly under-funded. Why? because NO-ONE thought it could ever come to this...tha­t they would ever have to actually cover the staggering number of failing banks and brokerages that are hemorrhaging billions. The Bush administration’s IGNORANT HUBRIS was the perfect Kerosene to mix with the Wall Street FERTILIZER of GREED to make a bomb large enough to bring down the world economy A LA THE WORLD TRADE CENTERS…..­AIN’T BLIND JUSTICE AN IRONIC BITCH????????

Bush Fiscal policy = Kerosene
Wall Street Greed = Fertilizer
Resulting Explosion = US & World Economy
You wanna’ talk terrorism??????
You wanna’ talk what REALLY damages America’s National Security??????
WELL….I TELL YOU WHAT……GO TALK TO THE US CONGRESS……THEY DROVE THE GODDAMN GET-AWAY CAR.

[anastasiabeaverhousen]

Your headline is the story of the shrub's life:

FILL IN THE BLANK is not impressed with Bush's FILL IN THE BLANK.

A most unimpressive person who came to be the worst president in American history, bar none.

Happy One Year from 1/20/09 to all!!!!!!!

[Justinpassing]

Merry Merrill Lynches’ misery is far from over, because the Monolines are crashing. The Monolines are the firewall of last resort. They under-wrote insurance on Bank’s investments, but are going down like lead ballons because they were grossly under-funded. Why? because NO-ONE thought it could ever come to this…that they would ever have to actually cover the staggering number of failing banks and brokerages that are hemorrhaging billions. The Bush administration’s IGNORANT HUBRIS was the perfect Kerosene to mix with the Wall Street Fertilizer of GREED to make a bomb large enough to bring down the world economy A LA THE WORLD TRADE CENTERS…..­AIN’T BLIND JUSTICE AN IRONIC BITCH????????

Bush Fiscal policy = Kerosene
Wall Street Greed = Fertilizer
Resulting Explosion = US & World Economy
You wanna’ talk terrorism??????
You wanna’ talk what REALLY damages America’s National Security??????
WELL.....I TELL YOU WHAT.....G­O TALK TO THE US CONGRESS..­..THEY DROVE THE GODDAMN GET-AWAY CAR.

[katok]

Any rebates will go to pay mortgages, allowing the banks to complete their "fire sale" to the Middle East/Asia before they all go kaput. Again, the only relief comes to those who created the problem. The citizenry forestalls their foreclosure's by 30 days. Some relief.

Here lies Kato K

Brought to his demise by his own Government

1963-2008

RIP

[Purple Girl]

NEITHER ARE WE!!!
This send it down the line crap must end.
they are selling US as a commodity on thefuture market including shares in our Futures.I'­ve gotta even giv eit to One Republican- Ryan from Wisconsin. Tell it like it really is.
Not to mention Bernake works for the same institutions that caused this current market fall- and have been the plague to our Country - and th eWorld at large.
Federal Reserve/World Bank= Private investment bankers dabbling in National solvencies.
They brought US to our Knees and once again we are expected to pay for the screwing.
they've left US like the dead whore they forced coke down in the alley.
Revoke the Use of the Federal Reserve Bankers from our National Treasury. Return OUR Gold, Get out!!! We lived without your tricks until '34- we'll give it a go without you again!

[ceasenake]

What are you going to do with your $800 Easter gift?

I'm thinkin' gun shop and casino.

[samuraijack]

Hey Check Out Andy- Andy works in "The Pit"- it's a hard job, squandering away other people's money. It's even harder when you have to lie to people and get them to buy worthless stock. But then, you can beat your wife, drink a lot, do some lines of coke to ease your stressful life, maybe take out that boy toy you have been thinking about. Lately, it has been really bad on the stock market - Andy here doesn't know if he can buy another condo this year with his bonus due to all the scary stuff going on. Poor Andy. NYSE- please keep Andy and his friends out of window offices, wouldn't want them jumping off ledges or other drastic measures. HuffPost, keep the shitfaced broker/trader pictures coming. Love 'em!!!

[olephart]

Prudent Bear Fund (BEARX) is up 9% for the year and 22% since October. Other short interest funds are doing as well or better. Bush is an imbecile, I bet against him and the cheerleaders at CNBC. Warning, this is not an endorsement of any investment; going short is not for the faint of heart; playing the Market is GAMBLING do not bet more than you can afford to lose; going short can hedge other investments in unsettled times.

[mmckinl]

There was a lot more going on than just Bush's Plan ... like several bond insurers ready to go belly up ripping open the banks balance sheets all over again.

[ajax2]

Since there are no plans to pay for the stimulus why not $10,000 instead of $300 ?

[larry278]

The franchise on selling apples looks like an emerging play. Franchising on having human beings carrying sandwich boards with ads look good too. There may be a bidding war on NY rickshaw franchies that will spread to other US cities. Will the MSM wait till we have 10 suicides a day of Wall St types to say that the recession is a depression? Bloomberg in '08 as an indie candidate for POTUS could take off in Aug '08.

[KRANKY]

DOW 11,500 before March. That is the most optimistic scenario and could form a temporary bottom.
The other situation is a liquidity crisis if insurers fail. MBIA, MGIC and other could very well be unable to meet obligations and go bankrupt. This would then cascade to themortgage lenders and banks, resulting in a meltdown of the dollar and hyperinflation.
$500 BILLION to a TRILLION$ to even begin to address.

Maybe then we will see the greedy groupies that gave us the WORST administration and the most obtuse president in history jumping out of windows and eating bullets.

Buy metals and short the US.
Preservation of YOUR capital. The US is screwed anyway.

[MilwaukeeDan]

There was plenty of info years ago by people that work for this government(David Walker, GAO chief) saying the bill will come due and must be paid with pain. Has anyone asked, what happens when the Boomers start to retire in large numbers? I can't believe the morons in both parties of our government and their excitement at these "stimulus" plans. We need to look at the big picture. We need more higher paying real jobs if they expect the consumer to press the economy forward(the consumer is 70% of the economy and they are tapped out). We need a cure Mr. Presidunce, not a band aid.